PROTON Pakistan

Introduction

PROTON was established on 7 May 1983 as a private limited company under the name Perusahaan Otomobil Nasional Sdn. Bhd. (“PONSB”) and was subsequently listed on the Main Board of the then Kuala Lumpur Stock Exchange (now Bursa Malaysia Securities Berhad) on 26 March 1992 as Perusahaan Otomobil Nasional Berhad (“PONB”). PROTON Holdings Berhad (“PHB”) which was incorporated on 28 July 2003 assumed the listing status of PONB on 16 April 2004 pursuant to a Scheme of Arrangement under Section 176 of the Companies Act 1965.

PROTON has three primary national policy objectives: • To spearhead the development of component

manufacturing industries,• To acquire and upgrade technology and industrial skills

within the automotive manufacturing industry, and• To strengthen the international competitiveness of

Malaysia’s industrial capability.

PROTON commands a substantial share of the domestic market for passenger cars and over the years has been building up distribution networks in key market centers acrossthese four regions:

• United Kingdom,• The Middle East,• South-East Asia, and• Australasia.

The business of the PROTON Group has been expanded to include engineering consultancy, manufacturing, distribution, financial services and property investments. With a turnover of almost RM8 billion in financial years 2005/2006, PROTON Group is one of the largest companies listed on Bursa Malaysia Securities Berhad.

PROTON Group designs and produces cars for diverse consumer preferences. The portfolio of PROTON models includes the family sedan Waja, the stylish Gen.2, theversatile Arena/Jumbuck, the fun-to-drive Savvy and the desirable sporty Satria Neo.

PROTON Group’s portfolio also includes the world-renown sports cars Lotus Elise, Lotus Esprit and the recently launched Lotus Europa. These cars are manufactured in Malaysia and the United Kingdom. PROTON Group conducts research in its centres in the United Kingdom and Malaysia for new technologies with the ultimate aim of putting these innovations into production through partnership with Tier One Suppliers of OEMcustomers. A number of these patents have been licensed to leading car manufacturers.

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Currently, PROTON Group has almost 11,000 employees who are involved in a spectrum of business ranging from research, design, development, testing, stamping, casting, machining and assembly to marketing, distribution and after sales activities.Strong customer-orientation and competitively-priced products are the foundation of PROTON’s business and are essential to the group’s success. PROTON aims to maintainmarket leadership by continuing to develop innovative products and through satisfying its customers in a better and more profitable way than its competitors.

PROTON in Pakistan

PROTON was launched in Pakistan on September 15, 2006 by his Excellency Arbab Ghulam Rahim chief minister Sindh

Proton launched four products in Pakistan.

We have selected the following areas to understand the marketing mechanism/strategies of Proton:

1. Product2. Price3. Place4. Promotion 5. Segmentation

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Product

In products section we have discussed about the features and specifications of four cars launched in Pakistan. Through this ( by describing the specification and features of cars), it is tried to market the products.

First we have described about the product

1. SAGA

SAGA 1.3 is available in Petrol/CNG. It is 4 cylinder, 12 value, air conditioned, power steering (Adjustable), power windows, central locking, remote keyless entry with alarm, CD player with AM, FM Radio, remote trunk & fuel lid opener, twin tone interior, front & rear seat belts, Reverse Sensors, Remote Door Mirrors (Color Matched), Crystal Head Reverse, Rear Combination Lamp, Tail Gate Spoiler and high Mount Stop Lamp and also CNG Cylinder Capacity 50 water Liter.

2. IMPIAN IMPIAN 1.6 is available in both manual and automatic transmission and also in CNG. IMPIAN 1.6 is 4 Cylinder, Twin Cam, 16 Values, A/C, Power Steering(Adjustable), Power Windows, Central Door Locking, Remote keyless Entry with alarm, CD player ( Thumb Control Stereo System), Remote trunk & Fuel Lid Opener, Twin Tone Interior, Leather Seats, Automatic Door Mirrors, Fog Lamps, Driver Foot Rest, Airbags, Alloy Wheels, Matching Bumpers, Crystal Head Lamp, Reverse Sensors, Height Adjustable Driver Seat, Rear Combination Lamp, Chrome Show Grill, Central Console, High Mount Stop Lamp, 60/40 Split Rear Seats.

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3. GEN 2GEN 2 is available in 1.3 and 1.6 with both

manual and automatic transmission and also in CNG. It is 4 Cylinder, Twin Cam, 16 Valves, A/C, Power Steering, Power Windows, Central Door Locking, Remote Keyless Entry with Alarm, CD Player(Thumb Control Stereo System), Twin Tone Interior, Front & Rear Seat Belts, Leather Seats, Fog Lamp, Alloy Wheel Crystal Head Lamp, Reverse Sensors, Height Adjustable Driver Seat, Rear Combination Lamp, High Mount Stop Lamp, Central Console, Rear Wiper, CNG Cylinder Capacity 30 x 2 water liters, Automatic Conversion from Petrol to CNG.

4. WIRAWIRA 1.5 is executive car. Also available in

CNG. It is 4 Cylinder, 12 Valves, A/C, Power Steering(Adjustable), Power Windows, Central Locking, Remote Keyless Entry with Alarm, Cassette Player with AM, FM Radio, Remote Truck & Fuel Lid Opener, Twin Tone Interior, Front & Rear Seat Belts, Height Adjustable Driver Seat, Remote Door Mirrors High Mount Stop Lamp, Driver Foot Rest, Alloy Wheel, Sunviser with vanity mirror, CNG Cylinder Capacity 55 water liter, Automatic Conversion from Petrol to CNG.

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PRICE

Considering the market of Pakistan, Proton Pakistan has mentioned very attractive process for its products. Because the Pakistani market is mostly price conscious. Its low prices have helped it to attract large market share. The prices of its products are as follows:

Version Price (Rs)SAGA 1.3 L 649,000SAGA (CNG) 1.3 L 679,000

Version Price (Rs)WIRA 1.5 L 729,000WIRA (CNG) 1.5 L 769,000

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Version Price (Rs)GEN-2 1.3L (Manual) 849,000GEN-2 (CNG) 1.3L (Manual) 889,000GEN-2 1.3L (Automatic) 898,000GEN-2 1.6L (Manual) 949,000GEN-2 (CNG) 1.6L (Manual) 999,000

Version Price (Rs)IMPIAN 1.6L (Manual) 1,049,000IMPIAN 1.6L (Automatic) 1,125,000

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PLACEPlace is also known as channel, distribution, or intermediary. It is the mechanism

through which goods and/or services are moved from the manufacturer/ service provider to the user or consumer.

Proton Pakistan has launched its products in all major cities of Pakistan. It has attracted many customers due to its good location of showrooms. It has opened its showrooms at the following cities:

Karachi Lahore Islamabad Faisalabad Rawalpindi Peshawar Multan Sialkot Quetta Gujrat (opening soon)

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PROMOTION

Proton Pakistan has tried to market its product through billboards and commercial on local cable networks (World Call).

SUGGESTIONS Proton should market its products on commercial TV channels. Proton should provide its cars free of cost to different banks and

negotiate with banks to reduce proton cars financing rates. It must reduce the price of GEN-2 upto 1 Lac Rupees, so that it may

gather more customers. It must change the shape of SAGA.

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